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GBP/JPY About to Break Above a Consolidation Range

GBP/JPy has been bullish in 2014, but consolidated in November roughly between a new 2014-high at 184.66 and 181.07. 

GBP/JPY 4H Chart 11/19
(click to enlarge)

Threatening Resistance: As we get into the 11/19 US session, the pair has rallied from the central pivot around 183.00 up to the resistance area, threatening to break higher into new highs on the year. 

Bullish Continuation: The technical picture favors this breakout because the prevailing uptrend is intact. Price is above the moving averages which are in bullish alignment. Also, the 4H RSI has held above 40 after pushing above 70, showing maintenance of the bullish momentum. 

Target: Since the November range was about 360 pips wide, a break above 184.70 should open up a projection toward at least 188 which is about 335 pips from the current 184.66 high. 

Central Pivot: Let's say we get a pullback. If price can hold above 183.00, the bullish continuation scenario would still be in play. A break below 183.00 would likely signal a period of consolidation/bearish correction, though the bullish outlook should still remain in the medium-term, especially if price is able to move below 181 as well. 

BoE Reaction:
It should be noted that the current rally was on the bank of the BoE meeting minutes, which was no different from the past several minutes. Perhaps the lack of a more dovish tone is what is keeping the GBP strong today.

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